FOCUS ON: MANUFACTURING
Figures for May showed output rose by 1.8%, bringing up an increase of 2.8% on the year, slightly more than most analysts expected.
David Kern, chief economist at the British Chambers of Commerce, said: “The figures show that the manufacturing recovery remains on course, despite the uncertain international background and the impact of the Government’s deficit cutting programme. The manufacturing output figures show there is no need for the government to abandon its current fiscal plans. However, the economic situation remains uncertain and everything must be done to ensure that there are no setbacks in the months ahead.” The Government is certainly highlighting manufacturing, with Business Secretary, Vince Cable launching a ‘Made by Britain’ project and calling for every MP to nominate a company in their constituency which illustrates a story of ingenuity and innovation. It seems ironic that manufacturing should need to have its profile raised at all, given that it still employs 2.6 million people and contributes more to the economy than financial services, generating 11% of GDP.
But Mr Cable admits the sector still suffers from a negative image. He said: “The idea is to build up a more positive picture of Britain being very inventive and actually very good at making things. It is a great shame that so many people, including MPs, have such an old- fashioned view of what we do in this country. When some are saying ‘We don't manufacture any more, we do banking and financial services’, it is a great shame. It is time to knock this myth on the head.”
The ‘Made by Britain’ nomination from Bath MP, Don Foster, was Rotork, the world’s leading manufacturer of electric, pneumatic and hydraulic valve actuators which are used in a vast number of processes in countries around the globe. According to operations director, Alastair Spurr, Rotork is doing well and is managing its growth. However he says every business like theirs requires two key things, the availability of good strategic suppliers and well trained staff, something that are becoming ever more difficult to find in the UK with the consequence that a migration towards other countries, where these resources are more available, seems inevitable.
20 Business West Update SEPTEMBER/OCTOBER 2011
‘It seems ironic that manufacturing should need to have its profile raised since it still employs 2.6 million people and contributes more to the economy than financial services, generating 11% of GDP’
“Ministers regularly say manufacturing is important, but many people would struggle to identify what action has been taken to identify very much in the way of assistance for our important sector,” said Mr Spurr. “Small businesses are vital to the manufacturing sector and they are struggling to obtain increased working capital, let alone finance for expansion. This problem then filters through to larger businesses who struggle to find smaller suppliers. If we are serious that manufacturing is an important sector to the UK economy then we must ensure it receives the financial support it requires for growth. That doesn’t mean cash hand outs, but rather the provision of consistently available loans, together with professional business advisory services which would grow our capacity. “Longer term strategies must include the training of our future manufacturing personnel. Apprenticeships and graduate training programmes should be given support, otherwise our future manufacturing skills will be limited compared to other more forward thinking countries.”
Andrew Polson, managing director of Polamco, agrees that the manufacturing sector struggles to find good people but for him there is also an issue about space. “We would like to see engineering being more widely promoted as a career option in both schools and universities so that young people are encouraged to consider getting into manufacturing. In our particular case, we have another pressing issue and that is finding the right space so that we can continue to develop and grow our business.” It makes a refreshing change to hear a story of growth and ambition from a sector which is crying out for talented workers who can build a long-term career for themselves by making a contribution to the thriving world of manufacturing in which Britain is once again making its mark around the globe.
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